Citigroup Expected to Settle Mortgage Probe for $7 Billion on Monday

WASHINGTON—Citigroup Inc. committed "egregious" misconduct by covering up problems with loans it was packaging into securities and selling to investors, Attorney General Eric Holder is expected to say Monday when the Justice Department announces a $7 billion settlement with the bank to resolve the government's mortgage probe.

"Despite the fact that Citigroup learned of serious and widespread defects among the...